<<Is anybody aware of anything in the new tax billthat eliminates the benefits of 'selling short againstthe box'? MostCurious>>

Yup. Many of the prior benefits of selling "short agains the box" have been eliminated with the "constructive sales" provision of the new law.

Congress was concerned that in recent years, several financial transactions have been developed which allow taxpayers to reduce substantially or eliminate their risk of loss without a taxable disposition. Hence, the provision.

The '97 act requires a taxpayer to recognize gain (but not loss) upon entering into a constructive sale of any appreciated position in stock, a partnership interest, or certain debt instruments as if the position were sold, assigned, or otherwise terminated at its fair market value on the date of the constructive sale.

There are exceptions to the general rule, and if you deal with "short/box" positions, you really need to get your hands on the complete explanation. It is confusing, and will get a little wild. I will be posting a "Frequently Asked Question" about the ins and outs of the "constructive sale" provisions in the near future. Stay tuned.